How to achieve financial security

2 days ago3 min read

Millions of people are anxious about the future and uncertain about their financial security. With everything going on this year, 2025 is a perfect time to get focused and transform your future. With economic uncertainty rising—government spending cuts, corporate layoffs, and inflation concerns—there’s no better time than 2025 to focus on your financial security.

How to achieve financial security — Financial Security Framework

Many took the leap into entrepreneurship in 2024, and whether you're building a small business or staying in the workforce, taking control of your finances now will set you up for long-term stability, less stress, and more fulfillment.

“Poor people use labor to work hard for their money. Rich people use creativity to ensure money works hard for them as they sleep.”

So, here are 5 key things you must do to build financial security

Manage a Great Credit Score.
Manage a Personal Household Budget.
Save an Emergency Fund & 6 Months of Living.
Invest for Retirement & Wealth Building Using a Compound Interest Bearing Account.
Teach Financial Literacy to Your Children.

Five core factors for how to achieve financial security.

There are several others, but I’ll keep this post short.

Manage a Great Credit Score – A strong credit score unlocks better financial opportunities and enables you to be successful. Understanding and managing the five categories that make up your credit score will unlock several benefits of financial health.
Manage a Personal Budget – Tracking income and expenses isn’t about restriction—it’s about control. Too many live paycheck to paycheck, even though they make a decent income. In many cases, that’s because we simply spend too much money on wants instead of necessities. A solid budget ensures your money goes to the right places. The general rule is up to 60% of your income on needs, 10% on wants and fun, 10% on an emergency fund and six months of spending (for future layoffs, health crises, etc.), and 20% on retirement and wealth building.
Save for Emergencies – Many Americans don’t have $1,000 in the bank to cover an emergency. A financial cushion means peace of mind, whether unexpected expenses or job shifts. An emergency fund helps you stay afloat without debt.
Invest for Retirement & Wealth Building – The earlier you invest, the more time your money has to grow using compound interest. Even small contributions to retirement accounts or index funds can lead to big rewards over time.
Financial Literacy for Children – Schools and colleges do not teach young adults how to manage money. Some states are now adding it as a curriculum requirement, but the effort is slow and only requires half a credit in many states. Therefore, the challenge falls on parents to teach their children how to manage money well. The issue is that far too many parents never learned the details, so they struggle to teach their children. All parents should contact a certified life coach for assistance. Tips4Living LLC has a required Vice President with over 40 years of experience in business and finance. He is a certified life coach and runs a nonprofit dedicated to helping teenagers acquire financial literacy. If you have questions...we have answers. Contact us for a free consultation at www.tips4living.org/consulting.

A word about building generational wealth

If you want to go further and create generational wealth, you need to transform your relationship with money. You must start with financial literacy for your children before middle school. Starting a business is a great way to get children involved in creating wealth so they can continue their growth as adults. The transformation requires a change in thinking.

So, you many be asking; why is now a great time to transform my approach?

Good news! Information to master these financial elements is freely available, so there's never been a better time to take action and get the answer to "how to achieve financial security." Financial security starts with knowledge and a plan. Start now and make 2025 the year you take control. Information, technology, and AI make this transformation easier than ever.

In Summary, what can I do to protect myself?

Don’t continue to be a consumer—build wealth instead. You probably have the talent and experience or can quickly acquire the knowledge, so get started today.